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But given the recent comments coming from the company's own COO Chase Carey, who in November this year admitted “We’ve been clear that MySpace has been a problem,” it's hardly surprising that rumours about potential job losses are doing the rounds online.

According to All Things Digital, which cites multiple sources familiar with the matter, up to 50 per cent of MySpace's 1,100 workforce could be laid off in 2011.

As an indicator of the kind of trouble MySpace now finds itself in, the company gave its employees the last week of December off work to save cash.

“Current losses are not acceptable or sustainable… But we know that we have to work very hard in [the] coming months to get this thing sustainable,” Carey sombrely noted in November. “We judge in quarters, not in years.”

One such way out could be the sell-off of MySpace - that is if someone is willing to buy the unloved website. According to All Things Dig, News Corp's digital media veep Jack Kennedy has been tasked with exploring that particular option.

MySpace, meanwhile, has been busy trying to recast itself as an entertainment portal and recently signed an account integration deal with one-time rival Facebook. ®